Published on January 16th, 2016 | by Joshua S Hill40
Increasing Global Renewable Energy Would Increase Global GDP By $1.3 Trillion
January 16th, 2016 by Joshua S Hill
A new analysis has concluded that by increasing the global share of renewable energy to 36% would increase global GDP by up to $1.3 trillion.
According to a new report published by the International Renewable Energy Agency (IRENA), Renewable Energy Benefits: Measuring the Economics, released today, increasing the global share of renewable energy to 36% by 2030 would increase global gross domestic product (GDP) by up to 1.1%, which equates to roughly $1.3 trillion. The reports aims are to provide “the first global estimate of the macroeconomic impacts of renewable energy deployment,” specifically, outlining the benefits that would arise by doubling the current global share of renewable energy deployment.
The REmap scenario doubles renewable energy, while REmapE doubles renewable energy with a focus on electrification
“The recent Paris Agreement sent a strong signal for countries to move from negotiation to action and rapidly decarbonise the energy sector,” said Adnan Z. Amin, IRENA Director-General. “This analysis provides compelling evidence that achieving the needed energy transition would not only mitigate climate change, but also stimulate the economy, improve human welfare, and boost employment worldwide.”
More importantly, however, the report clearly shows that increasing renewable energy deployment by such levels would have a massive impact on a range of social and environmental issues — specifically, the report concludes that the impact of renewable energy deployment on welfare is estimated to be three to four times the impact it has on GDP, with global welfare increasing by as much as 3.7%.
Employment, also, would benefit, with renewable energy jobs increasing from 9.2 million global jobs currently, to more than 24 million by 2030.
Furthermore, increases in global renewable energy deployment would not only impact the use of fossil fuels, but would also begin impacting global trade patterns — more than halving global imports of coal, reducing oil and gas imports, and benefiting large fossil fuel-importing nations and regions such as Japan, India, Korea, and the European Union as a whole.
“Mitigating climate change through the deployment of renewable energy and achieving other socio-economic targets is no longer an either or equation,” said Amin. “Thanks to the growing business case for renewable energy, an investment in one is an investment in both. That is the definition of a win-win scenario.”
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